Russia crisis leads to dismissal wave – Financieele Dagblad (Registration)

Russia crisis leads to dismissal wave – Financieele Dagblad (Registration)

Alexei Kudrin

Reuters

Rusland wait a wave of mass layoffs as a result of the economic crisis in the country. That says a former Russian finance minister, Alexei Kudrin, at the World Economic Forum in Davos.

“I predicted difficult times, but it would be so hard I did not expect, “said Kudrin. “Consumer prices have risen sharply. Large layoffs occur. In the Moscow construction industry are already 100,000 people lost their jobs. Be seen in the automotive sector are signs of crisis. “

The Russian economy suffers from the depreciation of the ruble, low oil prices and Western sanctions, which Russia can borrow hard money on

western capital markets.

Reserve

Kudrin took in 2011 resigned as finance minister because he did not agree with the increasing expenditure on defense. Under his reign, Russia imposed financial reserves of over $ 500 billion, including two reserve funds that can be used in difficult times to support the ruble and the Russian economy

Earlier this week, the Russian central bank announced that the Russian gold and currency reserves have dwindled to less than $ 380 billion, as a result of operations to support the ruble and rescue companies.

It is expected that the Russian reserve funds will be exhausted in the next eighteen months, if oil prices remain around $ 50 per barrel. Kudrin therefore called in Davos for cuts and reforms to ensure that the Russian economy can be more protected.